Location
Nottingham is recognised as one of the East Midlands' principal commercial and industrial centres. The city benefits from a diverse economic base, a substantial labour force and excellent connectivity to the national motorway network.
The estate benefits from strong road connectivity, with direct access to the A52. Junction 26 of the M1 motorway and the A610 are approximately 3.6 miles to the north-west, while Junction 25 of the M1 is approximately 5.5 miles to the south-west, providing convenient access to Nottingham, the East Midlands and the wider strategic motorway network.
East Midlands Airport lies approximately 13 miles to the south-west and provides access to one of the UK's most significant freight handling facilities.
The property forms part of the established Glaisdale industrial area, a well-established industrial and trade location to the west of Nottingham city centre.
The surrounding area is home to a range of national and regional occupiers benefiting from excellent motorway connectivity and access to a substantial labour catchment.
Nearby occupiers include Royal Mail, Hunter Douglas, Alton Cars and Ziztel.
Description
A highly reversionary industrial investment offering secure income, an immediate rental uplift and strong long-term asset management potential. Comprising 29,595 sq ft across two modern industrial units, the property produces a passing rent of £212,248 per annum, with a WAULT of 5.95 years.
The investment provides an exceptional covenant profile, with 100% of the income secured against two A-rated, Very Low Risk occupiers - Mitie Landscapes and Alton Cars.
- £212,248 pa passing rent (£7.17 psf).
- Immediate 15% rental reversion, with ERV of £244,159 pa.
- March 2027 Mitie lease event, providing a clear near-term opportunity to increase the rent.
- 100% of the income secured against Very Low Risk covenants.
- Combined tenant turnover of over £141m and net assets of approximately £50.6m.
- Attractive 5.95-year WAULT.
- Established Nottingham industrial location with excellent M1 connectivity.
- Offers in excess of £2.95m, reflecting a 6.76% NIY and 7.77% reversionary yield.
- Attractive capital value of just £99.70 psf.
- Further potential to enhance value through a leasehold regear.
The investment offers a particularly attractive combination of strong covenant security and genuine rental growth, with the current rent of £7.17 psf sitting below the estimated market rent of £8.25 psf.
With the March 2027 lease event providing an identifiable 15% rental uplift, alongside a long-term opportunity to enhance the leasehold interest, we believe 1 & 2 Glaisdale Business Centre represents an excellent opportunity to acquire a well-located, fully let industrial investment with both secure income and immediate upside.
Terms
The property is held leasehold by way of a 125-year lease from 16 August 1988 with a ground rent of one peppercorn.
The lease benefits from an unexpired term of approximately 87 years.
Further information is available within the Data Room.
EPC
Further information is available upon request.
VAT
We understand the property has been elected for VAT and anticipate the transaction will be treated as a Transfer of a Going Concern (TOGC).
Legal Costs
Each party to bare their own legal costs in the transaction.
